The effects of the US leaving the Joint Comprehensive Plan of Action (better known as the Iran Nuclear deal) on Iran can finally be seen after the first round of sanctions have been imposed. Sanctions kicked off on August 7, hindering Iran’s access of US banknotes and key industries (for example, cars and carpets). Trump hopes that this would stop Iran from supporting international terrorism, military activity in the Middle East and their ballistic missile nuclear-related programme.
So far, Iran’s rial currency has lost half its value since Trump announced the US’s withdrawal. Companies have been leaving Iran for fear of not being able to do business with the US – it’s as if all the students at school are icing out one person because the popular rich kid said so. Well life is about to get much harder for that one kid. In early November, the US will impose a second wave of sanctions and block Iran’s oil sales, its primary source of income. Although not all is bad, it seems that the EU, China, India and Turkey are not going to completely cut Iran away, leaving them some sort of life line.